Madison’s current proposal for a senior tax freeze prompts this reminder to residents regarding programs that are already available to seniors. Two existing plans offer relief to homeowners with limited financial resources: tax abatement and tax deferral.

Tax abatement forgives up to $1,269 each year from the tax bill of a senior resident. The income threshold is $63,660 for the abatement; 356 seniors currently benefit from this plan.

Tax deferral is exactly what it sounds like: It postpones payment of up to $8,000 per year in taxes for qualifying seniors using the same income threshold of $63,660. By deferring property taxes, these accumulated monies are not paid to the Town of Madison until such time as the home is sold. This is years down the road for many people, and the money saved by not having to pay taxes can be used for other needs. Even after 20 or 30 years of tax deferral, the amount of property taxes to be paid is a small percentage of the home’s value.

As we look at the proposal for a tax freeze, it is important to recognize that a town’s expenses do not decrease with a tax freeze. What happens is that fewer residents are called upon to cover the town’s budget. This pool of residents includes those seniors who may have just missed the income threshold. These not-wealthy residents are now also financing the taxes that those benefiting from the tax freeze no longer have to pay.

Guilford’s tax freeze costs more than $1 million each year. That cost is shifted to the rest of the taxpayers to assume on an annual basis. A tax freeze would truly tax our town. Let us be aware of the real costs.

Fillmore McPherson

Madison